Things are looking good for homeowners in Australia right now.
The cash rate has been cut to a new record low, and it’s the perfect time to start looking at opportunities for refinancing your home loan. Unfortunately, a lot of people are still failing to take advantage of the refinancing deals available to them.
While it’s tempting to shy away from changing your loan – particularly when you’re concerned about the hassle involved, there’s never been a better time to start saving some serious cash.
Preparing for Refinancing
The best thing you can do when you’re considering refinancing, is make sure you’re prepared. Before you go to the bank, consider what you’re going to need. For instance, you might need recent tax returns if you’re self-employed before you talk to a broker or pay slips if you’re employed. It’s also a good idea to get a list of living expenses ready so you can show how much money you need and how much you save.
Getting a great refinancing deal fast means making sure that the first assessment that professionals make of your situation is good. If your application is declined, then the mark will stay on your credit history and make it harder for you to get the right offer later.
Sticking with your Bank
If you already like your bank, that doesn’t mean that you should do nothing. The truth is that a lot of people don’t realise that they’re losing money on sticking with their old loan. Even if you do know that you’re losing out, it’s tempting to stick with what you’ve got because you don’t want to leave your old bank behind.
The truth is that even if you like your bank, you can’t assume that they’re giving you the best deal, you need to look at what other lenders can provide. Some lenders will offer a better loan structure, while others might be able to give you a better tax outcome.
When you’re looking at your refinancing options, make sur that you consider all the pros and cons from each of the providers that you’re considering. Don’t forget to pay attention for fees for things like applications and settlements too. Don’t just be tempted because you see a good honeymoon rate.
Doing your Research
Keep in mind that borrowing capacity may vary depending on the lender that you choose. You might find that the cheapest rate doesn’t mean that you can get all the capital you need – which is a big problem for some homeowners. Additionally, there are different properties available from different kinds of lenders too – with some companies specialising in houses or apartments.
Ensure that your eyes and your mind remain open when you’re looking for the right deal. Remember that there may be some special offers available if you’re willing to look for them, including cashback offers for people who are willing to refinance at the right time.
Once you do secure a better deal on your home loan, don’t stick with it forever either. Make sure that you keep checking on what’s going on in the market around you. You never know when the time might arise for you to switch again.